[Case Summary]This case involves a contract dispute (partnership/equity transfer). The plaintiff invested 20% of the shares in Beijing XX Personal Image Design Co., Ltd. and paid 120,000 yuan, but the defendant failed to pay the dividends as agreed and closed the store without authorization. The plaintiff entrusted Beijing Henglu Law Firm to handle the case.Tian Jia YanThe lawyer acted as the agent, and the court ruled in accordance with Article 509 of the Civil Code of the People's Republic of China that the defendant should return the investment amount of 120,000 yuan and pay the dividends of 22,000 yuan. Applicable legal provisions: Article 509 of the Civil Code of the People's Republic of China and Article 147 of the Civil Procedure Law of the People's Republic of China.

I. Review of the Case Facts

"What should I do if they don't refund the money after investing in shares?" "Can I sue if they don't pay the partnership dividends?" "Can I get back the investment money if the store closes down?" These are common problems in investment disputes. On October 26, 2020, the plaintiff signed a "Share Purchase Contract Agreement" with the first and second defendants, agreeing that the plaintiff would invest 120,000 yuan to purchase 20% of the shares of the image design company, and the defendant would pay 20% of the net profit (total revenue minus total expenses) every 20th of the month starting from October 26, 2020.

On the day the contract was signed, the plaintiff paid a total of 120,000 yuan via WeChat, Postal Savings Bank cards, and cash. However, the defendant failed to pay the agreed monthly profits. Later, the two parties agreed to pay a one-time dividend of 50,000 yuan on May 21, 2021, but the dividend was not paid until August. As of the date of filing the lawsuit, the defendant still owed a total of 22,000 yuan in unpaid dividends. The defendant also arbitrarily closed the store and stopped reporting the business revenue. After multiple unsuccessful negotiations, the plaintiff entrusted Henglu Law Firm to handle the case on their behalf.Tian JiayanThe attorney filed a lawsuit requesting the following: 1. Return the investment amount of 120,000 yuan; 2. Pay the dividends of 22,000 yuan; 3. Have the defendant bear the litigation costs.

II. The focus of the case

  • Focus 1: The validity and performance of the "Share Purchase Contract Agreement".It is a true expression of intent and does not violate mandatory provisions, so it should be implemented.
  • Focus II: Whether the defendant should return the investment funds.The defendant closed the store without authorization and failed to operate in accordance with the contract. The plaintiff's claim for a refund should be supported.
  • Focus Three: Should the unpaid dividend of 22,000 yuan be paid?There is contractual agreement and factual evidence to support the performance of the contract.

III. The professional intervention of Hengluo Law Firm

The investor (the plaintiff) alleged that:The plaintiff claims that the defendant should return the investment amount of 120,000 yuan, pay a dividend of 22,000 yuan, and bear the litigation costs.

Defendant's position:The defendant disagreed to refund 120,000 yuan, claiming that the two parties were in a partnership, the store was losing money, and it would take two to three years for the defendant to make a profit before withdrawing from the partnership. Moreover, the defendant also refused to pay the dividends of 22,000 yuan.

Hengluo Lawyer's Representation Opinion:Tian JiayanThe lawyer pointed out according to Article 509 of the Civil Code that the agreement is valid and both parties should fully perform their obligations. The plaintiff has paid 120,000 yuan as investment funds, and the defendant has the obligation to pay dividends and inform the plaintiff of the operating situation. Based on the records such as WeChat chats, the plaintiff's request to return the investment funds of 120,000 yuan and pay dividends of 22,000 yuan is reasonable and should be supported.

IV. Outcome of the case

The court, in accordance with Article 509 of the Civil Code of the People's Republic of China and Article 147 of the Civil Procedure Law of the People's Republic of China, rules as follows: 1. The defendant Beijing XX Personal Image Design Co., Ltd. and the defendant Zhu * shall, within seven days after the judgment takes effect, return the investment funds of 120,000 yuan to the plaintiff Wang *; 2. The defendant Beijing XX Personal Image Design Co., Ltd. and the defendant Zhu * shall, within seven days after the judgment takes effect, pay the plaintiff Wang * a dividend of 22,000 yuan; 3. For any overdue performance, the defendant shall, in accordance with Article 260 of the Civil Procedure Law of the People's Republic of China, pay double interest for the delay; 4. The case acceptance fee of 1,570 yuan shall be borne by the defendant.

5. Hengluo Law Firm's Reminder

This case is handled by Beijing Henglu Law Firm.Tian Jia YanThe attorney (practice license number: 11101202111381309, subject to the document issued by the judicial administrative organ) acts as the agent. For investment in shares, the exit and dividend distribution mechanisms must be clearly defined, and payment receipts must be retained. The Corporate and Commercial Team of Beijing Hengluo Law Firm upholds the principle of full performance of contracts to safeguard the rights and interests of investors.

VI. Common Questions and Answers about Investment Dividend Disputes

  1. Q: What should I do if I don't get my money back after investing in a company?
    A:According to the shareholding agreement, if the investor claims the return of the investment funds, and the other party closes the store without authorization or breaches the contract, the investor can demand the return of the funds.
  2. Q: Can I sue if the partner refuses to pay the dividends?
    A:Yes. If there is an agreement on dividends and the fact that the dividends have not been paid, you can sue to demand the payment of the unpaid dividends.
  3. Q: Can I get back the investment money if the store closes down?
    A:Yes. If the other party closes down the business without authorization or fails to operate in accordance with the agreement, the investor may claim a refund of the investment amount.
  4. Q: What should I do if the investment agreement doesn't specify an exit mechanism?
    A:It is still possible to claim the return of the investment funds in accordance with the principles of contract performance and the actual circumstances of breach of contract.
  5. Q: Does WeChat transfer count as an investment certificate?
    A:Yes. Payment records such as WeChat, bank transfers, and cash, combined with the agreement, can prove the fact of investment.